Understanding your Paycheck and W-4

Many employers will pay you once every two weeks. If you are unsure about your pay schedule, you should ask your employer. In addition, the pay date, located at the top right of the sample paycheck, is the date you should be paid for your pay period. ​

Gross wages represent how much you would be paid if deductions were not taken out (numbers 4-7). If you are not on salary and work for an hourly wage, you will see your pay per hour below ‘rate’ and the hours you worked during the pay period under ‘hours’.

YTD Gross or Year to Date Gross is the amount of money you have earned during the year before deductions.

Federal taxes are deducted for the federal income tax so that you are not sent a hefty tax bill when April comes around. You may be eligible for a tax return when taxes are due in April.

FICA SS tax (5) is taken out to pay your portion of Social Security. Social Security is deducted to pay for benefits for disabled and retired individuals.

The FICA Medicare taxes are deductions to pay for the cost of MediCare, which is a federal health insurance program for adults aged 65 or older and individuals with disabilities.

State Taxes are taken out of your paycheck to pay the state income tax. Like the federal income tax, this deduction lowers your tax bill in April.

Deductions represent all the taxes taken out of your paycheck and will show the total amount. As you can see in the net pay, the gross wage of 200 minus the 44.67 in deductions equals your net pay of 155.33 (take home pay). 

Net Pay is the amount of money that you will take home (Gross wages minus deductions).